WASHINGTON // Three months into a presidency that many believed would spawn a new era of bipartisan unity, Barack Obama's America is still deeply divided along partisan lines.
Eighty-eight per cent of Democrats approve of Mr Obama compared with 27 per cent of Republicans, according to a survey conducted this month by the Pew Research Center. The 61-point partisan gap is the widest ever measured for a president at this point in his first term, putting Mr Obama on course to be the most polarising president in the past four decades.
A Gallup poll this month found a similarly large partisan gap in Mr Obama's approval rating. That poll showed the gulf widening considerably since January when Mr Obama took office and many were labelling him the first "post-partisan" president.
In his victory speech, Mr Obama implored the US public to "resist the temptation to fall back on the same partisanship and pettiness and immaturity that has poisoned our politics for so long". And such rhetoric clearly had an affect on US residents - close to half were optimistic that Democrats and Republicans would work together, a separate Pew poll found. Since then, however, that number has shrunk to just one-quarter.
"There is no doubt that there was a moment between the election and his inauguration when people were much more optimistic that there would be a change in the way politics would be done," said Michael Dimock, associate director for research at Pew. "Now three months into his presidency that optimism is largely gone."
Some have blamed Mr Obama's ambitious agenda, which has included a series of bold economic proposals to rescue the country's faltering economy, including a stimulus bill of US$787 billion (Dh2.9 trillion) and a $3.4 trillion budget blueprint that will substantially increase the deficit.
Others say the partisanship is the continuation of a trend dating to the 1980s, when Ronald Reagan's conservative agenda started an era of hyper-partisanship that grew progressively worse under Bill Clinton and George W Bush. Certainly the presence of the 24-hour news cycle and political talk shows have stoked partisanship, others still say.
But Karl Rove, the former senior adviser to Mr Bush and a man known in his own right for partisan politicking, has heaped blame squarely on the new president.
"Mr Obama has hastened the decline of Republican support with petty attacks on his critics and predecessor," he wrote in an opinion column last week in The Wall Street Journal. They have also diminished Mr Obama by showing him to be another conventional politician."
Mr Obama has made some efforts to reach across the aisle, though his overtures have not translated into bipartisan legislative support. He has two Republicans in his cabinet and a third Republican, Judd Gregg, a senator from New Hampshire, was nominated to be commerce secretary before he withdrew citing "irresolvable conflicts" with the administration.
In March, several Republicans were invited to break bread with the president at a White House dinner. "We thought it was important for us to be able to step back for a moment, remind ourselves that we have things in common - family, friends, laughter," Mr Obama said at the time.
Still, such exchanges of pleasantries are not enough to change the partisan ways of Washington and nobody knows that better than Mr Obama. His stimulus package received just three Republican votes in the Senate and no Republican votes in the House; his budget proposal passed without a single Republican vote.
Some say Mr Obama is being a pragmatist, choosing to pass sweeping legislation in line with the Democratic agenda rather than curtailing his plans for the sake of winning a few Republican votes. In fact, with his wide margin of victory in November and his party in control of the House and Senate, Mr Obama too has found partisanship tactically useful.
When Republicans vehemently opposed his stimulus bill, Mr Obama effectively framed their opposition as obstructionist, rather than based on any principled argument. He is also considering using an expedited process known as "budget reconciliation", which would allow him to pass his budget, and possibly healthcare reform, with a simple majority.
"Partisanship is not bad," said Gary Jacobson, a professor of political science at the University of California, San Diego, who researches partisan polarisation in Congress. "People have serious disagreements over political fundamentals, goals, principles and so forth, and there is no easy way to meet in the fuzzy centre."
Prof Jacobson also said the significance of the partisan gap in Mr Obama's approval ratings has been overstated. He pointed to Mr Clinton's two terms, when the median partisan gap measured by Gallup was 55 percentage points. For Mr Bush, who promised to be a "uniter", the gap at times approached 80 percentage points. "It's much too early to make a big deal about this," Prof Jacobson said of Mr Obama's ratings.
During Mr Reagan's presidency, the median partisan gap was 53 points. For the seven prior presidents, however, the median partisan gap was just 35 points. Many believe the trend has been magnified in recent decades by the disappearance of such crossover political groups as conservative southern Democrats or liberal north-eastern Republicans.
Jay Cost, the conservative author of the HorseRaceBlog on RealClearPolitics.com, said Mr Obama has not done his part to offset them such trends.
Mr Cost said Mr Obama routinely mischaracterises Republican positions so he can more easily assail them. Mr Cost took issue with the top-ranking members of Mr Obama's cabinet - including Rahm Emanuel, his chief of staff - when they tried to paint Rush Limbaugh, the controversial conservative talk show host, as the "voice" of the Republican Party.
"It's an effort to delegitimise the opposition," Mr Cost said.
Bipartisan or not, Mr Obama enjoys strong approval ratings overall, averaging 61 per cent nationally, according to RealClearPolitics.com, which considered data from a variety of pollsters. "If he holds the Democrats and independents like he is doing now, he doesn't have to worry about Republicans," Prof Jacobson said.
sstanek@thenational.ae
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
COMPANY%20PROFILE
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Off-roading in the UAE: How to checklist
How to vote
Canadians living in the UAE can register to vote online and be added to the International Register of Electors.
They'll then be sent a special ballot voting kit by mail either to their address, the Consulate General of Canada to the UAE in Dubai or The Embassy of Canada in Abu Dhabi
Registered voters mark the ballot with their choice and must send it back by 6pm Eastern time on October 21 (2am next Friday)
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Skoda Superb Specs
Engine: 2-litre TSI petrol
Power: 190hp
Torque: 320Nm
Price: From Dh147,000
Available: Now
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Ticket prices
- Golden circle - Dh995
- Floor Standing - Dh495
- Lower Bowl Platinum - Dh95
- Lower Bowl premium - Dh795
- Lower Bowl Plus - Dh695
- Lower Bowl Standard- Dh595
- Upper Bowl Premium - Dh395
- Upper Bowl standard - Dh295
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Voices: How A Great Singer Can Change Your Life
Nick Coleman
Jonathan Cape
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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The five pillars of Islam
German intelligence warnings
- 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
- 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
- 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250
Source: Federal Office for the Protection of the Constitution
French business
France has organised a delegation of leading businesses to travel to Syria. The group was led by French shipping giant CMA CGM, which struck a 30-year contract in May with the Syrian government to develop and run Latakia port. Also present were water and waste management company Suez, defence multinational Thales, and Ellipse Group, which is currently looking into rehabilitating Syrian hospitals.
New schools in Dubai
Checks continue
A High Court judge issued an interim order on Friday suspending a decision by Agriculture Minister Edwin Poots to direct a stop to Brexit agri-food checks at Northern Ireland ports.
Mr Justice Colton said he was making the temporary direction until a judicial review of the minister's unilateral action this week to order a halt to port checks that are required under the Northern Ireland Protocol.
Civil servants have yet to implement the instruction, pending legal clarity on their obligations, and checks are continuing.